BILL ANALYSIS
Senate Research Center S.B. 1463
80R7403 CBH-F By: Seliger
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently, only the City of Midland imposes a 13 percent hotel tax, of which six percent goes to the state and the remaining seven percent is used for the city's promotion of tourism.
As proposed, S.B. 1463 authorizes the commissioners court of Midland County to impose a tax of no more than one percent of the price paid for a hotel/motel room in Midland County. The revenue generated from this tax will be used to promote tourism in the area and help cover operating costs of Midland County's multi-purpose facility known as the Horseshoe.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 352.002, Tax Code, by adding Subsection (a-1), as follows:
(a-1) Authorizes the commissioners court of a certain county, in addition to the counties described in Subsection (a), to impose a tax on a person who under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to use a hotel room that costs two dollars or more each day and is ordinarily used for sleeping.
SECTION 2. Amends Section 352.003, Tax Code, by adding Subsection (h), to prohibit the tax rate in a county authorized to impose the tax under Section 352.002(a-1) from exceeding one percent of the price paid for the room in the county.
SECTION 3. Effective date: upon passage or September 1, 2007.